EconPapers    
Economics at your fingertips  
 

Designing Fiscal Policy during Turbulent Times: From Proximate Genus to Specific Differencia

Cristina-Roxana Tanasescu and Camelia Oprean ()
Additional contact information
Cristina-Roxana Tanasescu: Lucian Blaga University of Sibiu, Romania

from ToKnowPress

Abstract: The post-2007 economic and financial crisis has reopened the debate on the effectiveness of fiscal policy as a tool of stabilisation of economic activity, including the relative merits of discretionary action versus automatic stabilisation. The paper presents some features of automatic fiscal stabilizers and some practical problems with discretionary fiscal policy. There is a need for continued precaution in the use of discretionary policy, deep concern for implementation of Automatic Fiscal Stabilizers. The size of automatic stabilisers appears strongly and positively correlated with the ratio of government expenditure to GDP. However, in practice automatic stabilizers operate more powerfully in some economies than in others. This is a conclusion of some debates resulted from literature review. This paper evaluates the role of fiscal policy in Romania and the impact of automatic stabilizers during turbulent times. The role of automatic stabilizers is less important in Romania than in other European economies and the fiscal policy was highly procyclical, that is undesirable in developing countries. The paper tries, also,to distinguish and discuss some causes of procyclical fiscal policy.

Keywords: fiscal policy; automatic stabilizers; discretionary measures; procyclicality of fiscal policy; Romania (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.toknowpress.net/ISBN/978-961-6914-16-1/papers/ML16-129.pdf full text (application/pdf)
http://www.toknowpress.net/ISBN/978-961-6914-16-1/MakeLearn2016.pdf Conference Programme (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tkp:mklp16:695

Access Statistics for this chapter

More chapters in Managing Innovation and Diversity in Knowledge Society Through Turbulent Time: Proceedings of the MakeLearn and TIIM Joint International Conference 2016 from ToKnowPress
Bibliographic data for series maintained by Alen Jezovnik ().

 
Page updated 2021-08-27
Handle: RePEc:tkp:mklp16:695